Small, but Needed Step, to Greater Government Transparency

In a significant step towards greater government transparency -- and how our taxpayer dollars are being spent -- the stimulus bill requires government agencies to report disbursed monies via an optional RSS feed.

For each of the near term reporting requirements (major communications, formula block grant allocations, weekly reports) agencies are required to provide a feed (preferred: Atom 1.0, acceptable: RSS) of the information so that content can be delivered via subscription.

Real time reporting of how money is allocated will provide advocate organizations greater ammunition to push for a more effective, productive use of government resources -- and our tax dollars. I fully expect this development to create a few firestorms in the blogging world... which will consequentially be covered by radio, broadcast and print media outlets.

Hat tip: Steve Rubel

The Newspaper are Dead... Long Live the Newspaper

It is no secret the Gray Lady is facing serious financial difficulties. Just 18 months ago The New York Times Co. had a market cap of $2.7 billion -- it is only $542 million today. While the Times motto is "All the News That's Fit to Print", their business model/plan is best summarized by their debt rating -- junk. The Times's financial difficulty is epitomized with the fact a share of the The New York Times Company costs less than the Sunday edition of the New York Times.

Newspapers across the country are facing a similar financial problems. Their content is in demand by consumers -- google major local events and the local print stories almost always appear first -- yet they have lost their monopoly of delivering information on demand (before the Internet one could not pull up a radio interview or TV newscast whenever/where ever one desired).

Warning: Wild Speculation

Perhaps the best business model for the local established media would be for television stations to buy out and merge with local newspapers?

Government litigation/regulation, once again (see federal government anti-trust cases against IBM and Microsft -- it wasn't the litigation that ended their monopolies... it was the firms failure to innovate), has failed to keep up with the technological advances in the marketplace and this time threatens to destroy the 4th estate. If this issue sounds familiar, recall the contentious ideological battles in the last 30 years over the concept of "cross-ownership". The "progressive left" has fought any attempt to lift this restrictions claiming it would place too much media power in too few hands, increase media layoffs and therefore reducing the quality of local news coverage and stiffle local democracy. As Amy Goodman wrote in a 2007 article:

The problem facing Martin and his big media friends isn’t that newspapers are unprofitable; it’s that they are simply not as profitable as they used to be. This is in part because of the Internet. People no longer have to rely on the newspaper to post or read classified ads, for example, with free online outlets like Craigslist.

The media system in the United States is too highly concentrated and serves not the public interest but rather the interests of moguls like Rupert Murdoch and Sumner Redstone, who controls CBS/Viacom. Media corporations that will benefit from Martin’s handout are the same ones that acted as a conveyor belt for the lies of the Bush administration about weapons of mass destruction in Iraq. We need a media that challenges the government, that acts as a fourth estate, not for the state. We need a diverse media. The U.S. Congress has a chance to overrule Martin and the FCC, and to keep the newspaper-broadcast cross-ownership ban in place. It should do so immediately, before the consolidated press leads us into another war.

While I agree it is in the American public interest to have "media that challenges the government, that acts as a fourth estate," I simply do not see any other way to ensure the survival of local media outlets other than consolidation. Two ideas that have raised to address the financial difficulties of local newspapers have been government subsidies (horrible idea for very obvious reasons) and establishing local non-profit trusts (sounds good, yet I doubt this actually works + who is going to subsidize the entities... rich local elite who do not want negative press coverage).

The viability of local news coverage depends on increasing the efficiency with which local news is produced and distributed. Breaking up existing "cross-ownerships" or preventing further consolidation does nothing to address this fundamental reality. The "progressive left" needs to come up with better arguments than demonization of MSM to argue against the repeal of the "cross-ownership" rule and come up with realistic, viable solutions to save local media outlets.

A Possible Solution: Repeal "Cross-Ownership" Regulations

Although my prediction of four daily newspapers by the end of Obama's first term may be a bit aggressive, their is little doubt that an unprecedented number of daily newspapers will cease publication in the next four years. Newspapers have seen their two sources of income (advertising and subscriptions) massacred by the combination of the Internet and recession (esp. the collapse of the real estate and automobile industry). Significant job loses are inevitable. The daily print newspaper model is dead -- and the income from an outlet's Web site is not nearly enough to sustain current news operations.

Consolidation with local TV stations may offer the best opportunity to preserve as much journalistic talent and reporting as possible. Unlike newspapers, local TV stations income stream is far more stable than newspapers. While local TV news broadcasts have seen advertising and audience share drop, their core income stream is far more reliable long-term than print and has not fallen nearly as much.

Like all firms in any sector, newspapers are going to need need to innovate, to adapt -- and many are. Numerous print reporters are already filing video along with the written story to enhance the effectiveness of the piece on the Internet. Local televisions stations are now posting written news stories on the front page of their Web sites without a produced news clip. The delivery mechanism of these two media genres is rapidly merging -- and they are competing with each other for SEO rankings and an increased online readership.

I fear if "cross-ownership" regulations are not removed many daily newspapers will cease publication. The quality of local news coverage will be greater if the remnants of the daily newspaper are allowed to merge with local TV stations than simply go online as a shell of their former selves. In the aggregate local news coverage will be greater if consolidation allows for increased efficiency in news gathering.

Innovate or Die

While Americans remain fearful for the economic future of our nation their is reason for hope (beyond finally having a POTUS that is competent). As reported recently by the Financial Times:

the United States, despite its current economic woes, remains the world’s most innovative economy, with unrivalled business sophistication and competitiveness, according to a new study by INSEAD, the Paris-based business school.
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The Global Innovation Index – released in New Delhi on Tuesday – looks far beyond traditional indicators of innovation such as the percentage of gross domestic product spent on research and development, numbers of engineering graduates, and numbers of patents obtained and scientific papers published each year.

Instead, the index seeks to measure an economy’s potential for a broad range of innovation – including social, marketing, and business innovations – by assessing its institutions and policies, infrastructure, and business and market sophistication as well as people’s skills.

The key for America to maintain it's role as the indispensable nation is to ensure our culture, economy and societal institutions continue to adapt to future challenges and opportunities. Although it is disturbing to read reports that our nation's youth score poorly in mathematics and sciences compared to other developed nations, technical knowledge will not in of itself guarantee our nation's preeminent role in global politics, national economic growth or high paying jobs for the next generation. Certainly a fundamental understand of one's field is essential, yet the ability to apply creative, innovating thinking to problems is the crucial element that differentiates talent and establishes power.

So keep the INSEAD report in mind tomorrow when the government announces an expected 5.5 percent drop in GDP for the fourth quarter. Hope is more than a slogan.

The Media's Change of Guard

I thoroughly enjoy the political e-mail conversations/debates I have with three good friends of mine growing up. Two I would consider very liberal, the other pretty conservative (of the Heritage Foundation ilk). After a conversation on whether or not O'Reilly and Hannity have any intelligence I decided to retort with a longer response on the future state of the media. The piece is unedited and very raw, yet I thought I would share it here as it may be of interest to some.

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Looking at the current media environment I think partisan media will only grow. If you look at communications and media historically partisan and opinionated news sources dominated. The period between WWII and the 2000 elections, where the ethics and standards of journalism was held in the upmost esteem, was a historically anomaly. This period was possible due to the incredible profit margins the networks, print and radio outlets had as the cost of distributing information went radically down due to new technologies (broadcast and print ad revenue with a growing affluent readership).

The profit margins are gone. Technology has grown so rapidly it has enabled an entire new medium of communication that is free to deliver -- the internet. Not only is it free it is incredibly fast. Why would I pay and wait for information when I can get it free and quicker online?

Daily newspapers are simply fucked. They will never make up the ad revenue online. The transaction cost for people to search for favorite sources of information online is very minimal. People will naturally look for information that conforms to their world view as it provides greater satisfaction. For evidence not only have the daily circulation numbers crashed, the New York Times corporate debt is now rated as junk and the Christian Science Monitor dropped its daily print edition and became a weekly. If a non-profit can't make it times are really bad.

With those will go the high standards for journalism, unfortunately. Newspapers especially will be in a desperate search to preserve market share, if they survive at all. Rebranding oneself as a paper that "thinks like I do" may be their only salvation outside of some of the elite papers (WSJ, Financial Times, New York Times).

Welcome to the new era of tabloid, partisan journalism. Our only salvation is more sites like TPM and similar right-wing sites find a new audience that is willing to pay for investigative journalism.

Furthermore...

The better question here is what does this mean for democracy? As communities grow more uniform (Santa Barbara elite liberals, suburban Orange County conservative), is the nature of bipartisanship essentially doomed? Don't blame the politicians -- blame the voting public!

My biggest concern here is that people stop thinking analytically on how to best solve problems and resort to familiar political rhetoric to feel they belong to something. A spirit of bipartisanship leads to better solutions as people are forced to negotiate out of their often narrow political convictions.